Good article in BusinessDesk re the FBU buyback headlined
Fletcher buyback timing likely to boost exec bonuses
Paywalled
Nice one ...but we are all winners at the moment.
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Good article in BusinessDesk re the FBU buyback headlined
Fletcher buyback timing likely to boost exec bonuses
Paywalled
Nice one ...but we are all winners at the moment.
https://www.nzx.com/announcements/374067
First cab off the rank to announce FY21 results.
Always a good sign that things are going very well when a company is busting at the bits to tell everyone how things are going.
That is a very good sign, also noting the upbeat (even bullish) commentary from STU, hopefully the whole sector is enjoying the massive monetary stimulus in construction and FBU in particular.
After a recent few years of disastrous investments, FBU finally seem to be back on track for a bright future. There's still plenty of upside SP imo, my LT target is the old ATH, and enjoy the divi on the way.
The pleasing thing about FBU's earnings growth so far this year is that they have achieved it without increasing actual activity - it's been a case of doing about the same but making more (in other words margin improvement)
Just imagine what profits might be if they increased activity levels
And the economic climate points to that happening
It is different this time (at this stage) as FBU is sticking to its knitting - expanding & investing in core domestic oligopolistic businesses where it has real competitive advantages.
When it starts expanding overseas and making acquisitions outside of its core businesses, that’s when it is not different anymore and it’s time to get out.
Sure, they have lots of experience in burning money overseas (as many other NZ companies who think that if they know NZ they know the world) - but didn't they make a dogs breakfast out of the Christchurch rebuild as well? But maybe repairing houses not their core business either.
I give you this - they always made money with selling ways too expensive building materials ... just not sure why nobody in NZ wants to fight their pharmacy prices ...
removed duplicate created thanks to unsatisfactory server performance / setup
Fascinating chart in a BusinessDesk article re Taylor’s rem.
Breach of copyright but if I give BusinessDesk a plug they mightn’t mind ..subscribe here https://businessdesk.co.nz/why-you-s...o-BusinessDesk
Big payout for Taylor coming in 2022, I suspect.
And well deserved as he has had to do some serious cleaning up of the garbage left behind by his predecessors.
As for Ralph Norris - it is sad that he did not see fit to retire at the very top but presided as Chairman through one of the worse debacles yet in NZ corporate history.
Big payout for Taylor coming in 2022, I suspect.
And well deserved as he has had to do some serious cleaning up of the garbage left behind by his predecessors.
As for Ralph Norris - it is sad that he did not see fit to retire at the very top but presided as Chairman through one of the worse debacles yet in NZ corporate history.
Latest building consent numbers still strong
Westpac says The pipeline of consents suggests that homebuilding activity will remain strong over the rest of 2021 and into 2022
That’s good
A month ago FBU was heading to 8 bucks
Now it's heading to 7 bucks
When does the buy back start again
jeez - the buyback doesn't start again until 20th of August
Need another earnings upgrade
For Bar just upgraded to Outperform.
OUTPERFORM
We expect Fletcher Building's (FBU) earnings momentum to continue over the next 12–18 months. Whilst capacity and
supply chain constraints are limiting the pace of construction work done in NZ, FBU's domestic manufacturing is
benefitting from lower competition from imports and a strong pricing environment. FBU is not without risk, the principal
being cost pressures not being able to be completely offset with price, however, given consensus is forecasting flat NZ
earnings over FY22/23 we believe risks are skewed to the upside. We upgrade to OUTPERFORM.
What's changed?
Easing competitive constraints...
We expect NZ core to remain stronger-for-longer. Whilst a number of tail winds are likely to ease over the near to medium
term (rising interest rates, subdued population growth, reduced residential supply/demand imbalance) — demand will be underpinned
by a historical under build, solid pipeline, and capacity constraints elongating the cycle. Furthermore, the sharp increase in the price of
transporting goods has reduced competitive pressures from imports with FBU's domestic manufacturing businesses being a key
beneficiary. While cost pressures are emerging, the elevated demand and tight supply environment should see these largely passed
onto customers.
...supports a period of stronger NZ earnings growth
We have upgraded our earnings forecasts for FY22 and FY23. Primarily as a result of increasing NZ materials prices and improving
non-residential/infrastructure activity. However, building materials cost pressures and a softer Australian FY22 (given ongoing
lockdowns) weigh on upgrades. We see upside risk to consensus numbers which currently forecast flat NZ earnings over FY22–23.
Valuation not challenging in an expensive market
While FBU is trading above its long-run average multiples (EV/EBIT and P/E of 11.0x/14.5x vs. historical averages of 10.1x/13.0x) we
do not view this as an impediment to a more positive view given (1) our expectations of upgrades and (2) larger discounts to both the
New Zealand market and Australian building materials peers history. Furthermore, FBU offers a solid cash yield of 5.0%, a healthy
balance sheet, and is in the early stages of a NZ$300m buyback
Boral packing a sad and exiting its NZ plasterboard operations
Well that leaves Fletcher's Winstone with basically 100% of the market ....cool
Sort of answers. Extract from NZ Herald..
Fletcher Building's Winstone Wallboards has market dominance nationally via its Gib brand, manufactured at Penrose but shifting to a new $400m Tauranga plant in 2023.
Kevin van Hest of Elephant Plasterboard in Auckland said he was sorry to see USG Boral leave this country.
"This now just leaves Elephant Plasterboard and Gib plasterboard in the New Zealand market," he said. "It is very sad, even though they were also a competitor of ours. New Zealand needs competition in the plasterboard market. Prices for Gib are already starting to skyrocket. It's the consumers that will ultimately suffer. If we go, then it will truly be a monopoly."
van Hest estimated Gib might have a 97 per cent market share after USG Boral's departure.
David Thomas, Winstone Wallboards' general manager, said the wall linings market in New Zealand was very competitive with a number of products still available in addition to Gib plasterboard.
"GIB is Kiwi-made, supported by great customer service, is a reliable quality product and provides best value for money, making it a very competitive product offering. Our focus has always been on providing the best value offering to our customers, in terms of product quality and customer service, at a price that reflects that value, just as we have done for more than 90 years," Thomas said today.
Placemakers 15% price rise. Paywalled.. https://www.nzherald.co.nz/business/...7E5QETLN2KWVQ/
Big day for Fletcher’s this Wednesday
I reckon F21 ebit to be $675m - above guidance
What will be good if they come out f22 guidance of $740m/$750m
Looking forward to it
I think you may be correct W69. FY22 I am expecting $740m/$800m. They are well positioned with residential new builds for next 12/24 months + Govt Infrastructure work. Legacy projects should almost be out? Increasing prices to cover there own increases as well.
Nice price bounce ahead of FY results tomorrow. I'm expecting quite a bit of bullish outlook statements and a fatter divvy payout. Perhaps an outside chance of another go at acquiring STU??
Fletcher Building strong FY21 result, final dividend 18cps - NZX, New Zealand’s Exchange
Fletcher Building strong FY21 result, final dividend 18cps
18/8/2021, 8:31 amFLLYRFletcher Building delivers strong FY21 result, final dividend of 18 cps
Auckland, 18 August 2021: Fletcher Building today announced its audited financial results for the year ended 30 June 2021 (FY21).
Summary:
- Revenue of $8,120 million, up from $7,309 million in FY20
- Net Profit After Tax of $305 million, compared to a loss of $196 million in FY20
- EBIT before significant items of $669 million
- Return on Funds Employed before significant items of 18.6%
- Cash flows from operations of $889 million
- Strong balance sheet with net debt of $173 million and liquidity of $1.6 billion
- Final dividend 18 cents per share, bringing full-year FY21 dividend to 30 cps
- On-market share buyback programme of up to NZ$300 million through to Jun-22
Chief executive Ross Taylor said: “Fletcher Building’s strong FY21 financial result reflects the significant work carried out over the past three years to reset and simplify the business. We are confident we have a sustainable base from which we can drive further performance improvements and growth.
“FY21 saw increases across all our key financial metrics. EBIT before significant items of $669 million was ahead of our full-year guidance. EBIT margin of 8.2% and Return on Funds Employed of 18.6% were both materially higher than FY19 (our most recent comparable year). Cash flows from operating activities were very strong at $889 million, partially benefitting from low stock levels in our manufacturing and housing businesses, which we expect to rebuild through FY22. Our balance sheet finished the year in a strong position, with net debt of $173 million and $1.6 billion liquidity at 30 June 2021. Just after year end, we were pleased to reach an agreement to sell Rocla for AU$55 million.
“Having delivered a strong earnings and cash flow result, the Board has approved a final dividend for the year ended 30 June 2021 of 18 cents per share (unimputed and unfranked) to be paid on 17 September 2021. Combined with the 12.0 cents per share interim dividend, this brings the total dividend to 30 cents per share for the FY21 year. Our share buyback programme of up to $300 million started in June and will continue through FY22.
“We continue to make targeted investments to deliver on our strategy. This includes a mix of capital and operating spend, and remains focused in three areas: key maintenance investments, such as the new Winstone Wallboards plasterboard facility; initiatives which support our sustainability ambition, such as the waste tyre recycling facility at our cement plant; and growth investments in product adjacencies and digital capabilities. Our focus on digital includes an acceleration of our programme to create a backbone system environment that is fit-for-purpose.
“As we look ahead, we believe that the economic trends in our key markets remain supportive for further growth. In New Zealand, the activity pipeline continues to look ‘stronger for longer,’ especially in the residential sector. With ongoing supply chain and labour constraints having the effect of smoothing the recent sharp rises in building consents over a longer period, this is likely to mean an extended period of solid building activity through FY22 and beyond. In Australia, the residential outlook also remains resilient, particularly across detached housing and renovations, while the apartments, commercial and key civil sectors are likely to stabilise at current levels.
“There does remain some uncertainty around the impact of COVID-19 on activity in our markets. We will continue to monitor and manage this closely.
“Overall, the combination of a clear strategy, a favourable market outlook and a strong balance sheet means Fletcher Building is well-positioned to deliver future performance and growth.
“Finally, there’s no doubt that the past year has seen many challenges and disruptions resulting from the global pandemic. Against this backdrop, I would like to thank our more than 14,500 people who have delivered this performance while remaining focused on supporting our customers and each other.”
#Ends
FY22 outlook
Continue to drive performance and growth
Page 41 | Fletcher Building Limited Full Year Results Presentation | © August 2021
➔ New Zealand: activity pipeline continues to look “stronger for longer,” especially in Residential; supply chain and labour constraints mean
Residential sector is currently at or near capacity, likely to mean extended period of building activity in FY22 and beyond
➔ Australia: macro backdrop supportive for growth; Residential outlook strong, detached housing and renovations supportive offset by apartments
sector; Commercial and key civil sectors stabilising at current levels
➔ Input cost inflation and supply chain disruption remain key features of the NZ and AU operating environment; businesses well set up to recover
costs through price
➔ COVID-19 outbreaks/lockdowns remain a risk. Sharp operational focus, strong response disciplines embedded
➔ We have a strong balance sheet, a favourable market outlook, and remain well-positioned to drive performance and growth
➔ Further update on trading and outlook to be provided at Annual Shareholders Meeting in October 2021
Results pretty much bang on with consensus forecast except for positive upside of :
1. Cashflow so net debt is now down to all of $173m,
2. Final dividend of 18cps is 3 cps better than expected.
All in all an excellent result.
Revenue slightly above analyst predictions, earnings slightly below (37cps vs 39cps expected).
Return on Equity not outrageous - a tired 6.1%, but hey, much better than last year (which delivered a loss) and good that they managed to reduce their debt load (liabilities to assets to something like 52%.
NTA is $3.30 per share - hmm.
forward PE (3 year average) is now 16.7, however predicted forward earnings growth (based on pre-result predictions) is 10%. Backward earnings growth however is zilch, so can they really do it? Not a good company in boom times ...
Maybe ok-ish priced (if the earning predictions hold) but in my view not a cheap stock - but one never knows to which heights hype can drive a stock ...
Look at this Long term tho.
Attachment 12849
Yes?
Hardly any move in long term revenue. Actually - 10 year revenue CAGR is negative 0.2%. Not a pretty picture.
Earnings per share jumping around a lot every year, but the overall CAGR looks still worse than the revenue: 10 year CAGR negative 1.9%;
Lets hope that their future looks better than their past, shall we?
"this time it will be different" ... ?
But again ... nobody can predict where hype drives the SP in the short term ...
BP - you got lockdown blues already?
I'm a bit concerned about you state of mind
With respect to Revenue BP...didnt they withdraw from...how did they describe it...vertical projects ?
Wouldn't you expect this to affect revenue ?
They are back quoting and winning vertical projects with better margins and tighter control. Also retentions are looked at very closely as FBU Lawyers get involved checking contracts to ensure FBU are covered..
So if you miss a deadline on a build and contractor has to have scaffolding up for xxx time there are costs associated with this which full liable of FBU. So they are pushing back on these as they were caught out on past with big dollars. There are many other reasons this is one....
I work for fletchers and a quantity surveyor. Retentions are there for the duration of the defect period for any remedial work required. Scaffolding in your example is not nessesarily part of that. It wasn't the retentions that caught them out it was the poor contract conditions. Type of contract and liquidated damages that hurt the most.
Same, depends on examples. We aren't allowed to do any jobs with these on. Paying for poor governance by previous board/management..
Excellent earnings result today - appreciating the nice dividend and share buyback amounting to a very significant total return for shareholders.
Yet another Uni Academic with too much spare time on their hands in Lock down wading in to make the news ? ;)
Haven't we seen this sort of thing before in an earlier lock-down ? ;)
I really liked the result, looks as though they have shed some of the legacy projects that weren't making any money and moved onto focus on their core business which they should be doing. Going into building houses and apartments at scale is where I think the opportunities can be. They are low margin, but at the volumes they can do, they can scale. Its hard to believe its taken this long to capitalise on the building boom that's taken place in the country from I'd say 2017 onwards.
I like the material repayments in the debt profile and the share buyback that is taking place. There also looks like there is a strong runway of growth going into the future which has just started. I'm still not sold on the management team completely due to the decisions they've made in the past of getting into some construction contracts they've lost money on.
I've been looking closely at the homes on Fletcher Living for a few months now and I'm surprised. Firstly, the going rates of these new builds, and secondly, how quickly they sell. Nothing really stays on there for longer than a month and the new supply gets gobbled up so quickly. Being at Level 4 however makes me wonder, how long it would take before it affects their business as whole. I'd say it would take at least a month at Level 4.
Disc: Not a holder but looking closely if it drops.
Actually, the residential division was by far the highest margin part of the business in the last 12 months, with a 21% EBIT margin, and also they presumably are using product from their own building supplies and concrete divisions etc - adding even more to company economies of scale.
Margin improvement has been key driver of earnings growth
F20 was a weird year so like what Fletcher's did let's compare things to F19
Sales are down 188m on F19 but EBIT is up 71m
less sales impact on EBIT was 14m (adverse) but that margin increase of 100bps improved EBIT by 85m
Still plenty of room for improvement I reckon ..... both sales growth and even higher margins
I note that FBU has used up its NZ tax losses and most of its prepaid tax asset (which stood at NZ$61m at June 2020) and the Investor Presentation states that they expect to impute the FY22 final dividend, so all things being equal the gross dividend yield will improve next year.
As the company has significant Australian businesses, they are unlikely to be able to attach full NZ imputation credits to future dividends paid, but even partial imputation credit cover will be a plus to NZ shareholders and also offshore shareholders due to the supplementary dividend regime.
Note 25 suggests they still have Australian tax losses with a carrying value (i.e. tax effect of the gross tax loss amount) of NZ$92m at June 21, so still some way away from paying tax again in Australia. According to Note 18 FBU does have a positive balance in its Australian franking account of NZ$35m, so they may have the ability to attach some franking credits to FY22 dividends from this existing balance.
In the past, FBU alternated between attaching franking credits and attaching imputation credits to dividends paid, so maybe the comment that they expect to impute the final FY22 dividend infers they will attach franking credits to the interim FY22 dividend? FBU previously explained that the alternating treatment was designed to maximise the benefit of the supplementary dividend regime for Australian shareholders.
Didn't realise this has gone XD so quick, almost in a blink of an eye.
Anyone else worried that Fletcher's factories in Auckland are being allowed to reopen?
This is how COVID has spread overseas during supposedly strict lockdowns. Large, politically connected factories producing non-essential products lobby politicians and civil servants to re-open eroding social trust ("why can they open and we can't?"), cause clusters of new cases and delay or make impossible elimination. After long enough, everything is essential to someone.
Government lets factories return to unplug building supplies bottleneck
Why? They are doing it based on protocols just like rest of NZ did safety under level 3. And lets not forget this is out because of Govt f**k up in MIQ and they still haven't found root cause.
To industry!
We do have a supply issue imo. However the families in cars is not such a thing anymore.
https://www.rnz.co.nz/national/progr...ving-in-motels
Do Fletcher’s think the share price isn’t low enough yet to recommence buy back
I wonder if the 5 week lockdown has delayed given the cost of paying wages during the lockdown. Maybe they might reduce it too $200m? Are they allowed to do that?
This has come down quite a way from recent highs. Thoughts? My price alert went off and looking to buy.
Consents at Records..
Despite a nationwide lockdown residential consents set a new monthly record in August, finally topping October 1973.
Unsurprisingly, given the recent run of strong consents, 12-month rolling approvals (+24% yoy) and floor area consented
(+22% yoy) also hit new all time highs. Non-residential approvals also lifted in August after a softer period in the middle of
the year. Whilst consenting remained robust through lockdowns, the suspension of construction under Alert Level 4 (and to
a lesser extent Level 3 restrictions in Auckland) will mean that consents issued during lockdown added to the backlog of
work to be done, further elongating the cycle. Putting any material shortages and supply chain issues to one side, we expect
construction activity to have recovered strongly as restrictions were lifted.
Residential consents defy lockdowns
Residential consents carried on recent momentum in August to set a new monthly record of 52.5k (seasonally adjusted and
annualised) reported approvals, up +4.1% mom, +35.5% yoy. Detached dwellings were down -4.8% mom and up +35.5% yoy. High
density dwelling approvals, which can be volatile month to month, were +14.3% mom and +57.4% yoy. All regions experienced growth
in July, led by Canterbury (+61.1% yoy), Auckland (+55.4% yoy), and Waikato-Bay of Plenty (+34.1% yoy) whilst Wellington (+11.4%
yoy), Regional South Island (+16.0%) and Regional North Island (+18.4%) had slightly more subdued growth. 12 month-rolling floor
area consented, the best indicator of future residential activity, was up +22% yoy.
Non-residential retains strength
Non-residential consents were strong again in August after a softer June month with value/sqm +16.7%/+9.1% yoy. Health,
commercial, retail, industrial and office experienced yoy improvements in August whilst accommodation and education declined.
Non-residential approvals are lumpy by nature due to the relative size of projects, on a rolling 12 month non-residential value
consented was +14.7% yoy (and overtakes July for the second highest 12-month period on record) while area approved (sqm) was
down -1.7% yoy. Accommodation and retail were the only key sectors to see the value of consents decline on a 12-month rolling basis,
which is not surprising given the pandemic's impacts.
A late price drop off in Wall St has put downward pressure on the NZX and I suspect it to affect global markets as they open..Interesting to see FBU's price holding steady. Chartwise (reflecting trading behaviour) this steadiness with yesterdays uptick off the bottom of the slow stochastic indicator (short term indicator) gives trading confidence that the 7.00 support level may once again hold. If overwhelming selling pressure pulls the price back and breaks the 7.00 support it will put FBU"s Bull status under threat as the previous thought of a Bull market correction may be perceived now by investors as something more ominous such as a hind sighted view of a slow market cycle reversal to Bear Status.
Gee FBU has been a fanastic stock to have in a portfolio this last year..One can't complain being up 100%...eh.
Perhaps this rise could be seen as too fast and investors sees FBU having a well deserved breather..
As always time will tell.
Attachment 13022
Thanks Hoop I am bidding support. Glad to know I hadn’t missed something. As you say let’s see.
Share price below 7 bucks
Wasn't that long ago some said it's going to 8 bucks
Maybe they will think that is cheap enough to re-commence the share buyback
Maybe it's headlines like this in NZ Herald causing the sell off
Building sector leading slump in business confidence - NZIER
Orr better be very careful tomorrow. The Govt and he may well derail the economy..Still heaps and heaps of work out there..Be an interesting ASM on the 19th. I wonder what the lockdown has cost them paying 100% of wages..
And Akl has a lot of manufacturing plants and sites that were not working + the goings on in Aust.
Buy Backs started..https://www.nzx.com/announcements/380557
Winner(n) , what metrics made you call this. Has been a good trade since GFC.
Tracking the buyback but couldn't but notice that when FBU did a profit upgrade and announced the buy back back in May the share price was $7.22
Much the same as today ....hmmm
Peaked at $7.99 2 months ago from memory then came Covid and higher interest rates ticking up. Building costs going up left right and center thou those costs are being passed on. Looking forward to update on Tuesday 19 Oct.
Buyback kicking in again around the $7 level suggests this will be a likely floor. Good buying around these levels in my opinion.
Disc: long term and swing position.
Trading either side of the New Zealand lockdowns has been very solid, and at levels above the prior
year.
It's facing this 7.30 resistance again
Attachment 13125
Its beginning to look like 6.90 was a significant low with 7 now being major support.
Maybe it can break through the green dotted line this time and R can become S.
For Bar latest update this morning. Target $8.20
OUTPERFORM
Fletcher Building (FBU) has provided a trading update and outlook commentary at its annual shareholder meeting (ASM).
While no quantitative FY22 guidance was provided, commentary highlighted, 1) a strong rebound out of Level 4 restrictions
with NZ volumes ahead of last year despite ongoing Level 3 restrictions in Auckland, and 2) only a slightly negative overall
impact from lockdowns in Australia. We have made minor adjustments to our forecasts with a longer than expected period
of elevated restrictions in NZ offset by a stronger than expected rebound in activity, particularly in Auckland which remains
at Level 3. Given the robust outlook we continue to see value at current levels. OUTPERFORM.
What's changed?
Lockdowns just a blip
Whilst 1Q22 has been impacted by restrictions across both side of the Tasman, FBU has seen a strong bounce back in activity to levels
higher than the prior year as restrictions have eased in NZ. While there is clearly some catch-up work post lockdown the industry is
operating at a higher than expected level, particularly given Auckland remains in Level 3. As such FBU expects volumes for the balance
of the year to be above last year assuming no adverse changes to alert levels. In Australia, the net impact of lockdowns has slightly
subdued trading and FBU expects activity to lift as restrictions are eased in Victoria and New South Wales. While 1H22 group EBIT
margin will clearly be lockdown impacted, FBU expects 2H22 will show progress towards its FY23 target of 10%.
First half impact but solid growth going forward
We are forecasting 1H22 EBIT of NZ$304m down -6% on the prior year. We expect an impact across all divisions but slightly larger
declines in building products reflecting shutdown and restart costs of major manufacturing plants. We expect a stronger 2H22 with
EBIT +10% on the prior year. FBU also highlighted that it has been able to effectively manage rising input costs and supply chain
disruptions in FY22 thus far, suggesting price increases are sticking and the margin headwind seen in recent periods is abating.
Remains attractive
We continue to view FBU as attractive at current levels for a number of reasons; (1) FBU is trading on undemanding multiples (12m
fwd EV/EBIT of 11.2x and 12m fwd PE of 13.6x), (2) the outlook for construction activity remains strong, and (3) FBU's balance sheet
is in good shape. The recent resumption of FBU’s NZ$300m buyback (c.NZ$275m to complete) highlights management’s confidence
in the outlook, in our view
not today it seems - poked head above but then we got the Aussie smackdown.
Attachment 13129
New residential Building consents up 25% in 12 months to September …..non-residential up 10%
Plenty of work and stuff needed …..Fletcher’s looking good
FBU sp looking not so good.
Green squiggly line going past red squiggly line. :mellow:
I guess it depends on your colour scheme ... however if you use green for the MA50 and red for the MA200 (that's often the default), there is still a long way to go to the cross of death.
Share price is flirting with the MA200 - this is correct, but it is not really "confirmed" below - might nicely bounce back from the MA200 ... this could well be a buying opportunity.
Anyway - DYOR;
Discl: holding and not worried;
Flirting with the strong area of support around AU$6.65. The weakness has really surprised me, especially given the buyback. Technicals are healthy on a monthly chart, but a bit ugly of daily and weekly.
Market is unsure how to play this. I suspect we might need some sort of FY guidance so investors are aware whats happening. What I do no is the housing Boom hasn't slowed. A number of divisions have there order books full up into August next year and it still continues to pour in.
Might see an upgrade to earning soon, going by what STU put out this morning.
Govt reckon the likes of Fletcher's are ripping NZers off so going to have another industry review
They be better off not wasting time and money and putting energy into other things
Been through this a few times now ..... nothing will change
NZ is such a small company and as such always going to 'pay' more than most of the world
https://www.nzherald.co.nz/business/...KKG6CY6LHZFOI/
Prob paywalled
W69, I read that. They also compare us to Aust. Why? Aussie homes are simpler In Aust for windows you get xx amount sizes. In NZ its like everything is unique unless you are building for a client who has same size throughout their project. Retirement Village sort of thing. Its nothing more than a Govt blame game. New house prices will jump next year with extra Sick Leave and Annual Holiday included on rising costs on everything.
A fair point. NZ Building industry is probably one of the least efficient in the world given the desire to avoid any standardisation.
Can't agree however that this is the only reason for the stellar costs of building materials here in NZ.
When we arrived some 26 years back from Europe I found that building materials like nails, joiners and even paint was 50 to 100% more expensive than buying it in a German building market. Timber was at least twice the comparable price to coming from a German sawmill, and this despite the European timber being of much superior quality. They sell you timber in Europe which keeps in shape, even if you don't immediately use it.
The NZ building industry produces unbelievable low quality for an eye-watering high price - and the consumers, who often don't know better (and have as well little options) have no other choice than feeding a lazy and inept duopoly ...